In 2022, the sales in the South Florida high-end real estate market reduced, which experts are calling “a return to normal” after the roaring demand of the previous year.
This follows from a new report by The Keyes Company and Illustrated Properties, devoted to sales of single-family houses and condominiums worth upwards of $1 million in Miami-Dade, Broward, Palm Beach, Martin, and St. Lucie Counties, as well as Lee and Collier Counties in the southwestern part of the state.
In 2022, 10,149 luxury single-family houses were sold in this area, which is 10.2% fewer than in the previous year. The sale of 5,501 condominiums marked a decline of 11.9% year-on-year.
The median price of a single-family high-end house reduced by 7.1%, down to $1.625 million. In case of luxury condominiums, the median price, on the contrary, increased by 3.8%, reaching $1.68 million. There were sharp price surges in some areas. For instance, average condo prices in Broward County skyrocketed by 26.2% over the year, to the level of $2.19 million. High-end properties of this type in Brickell, Miami, became 27.6% more expensive.
Sales of luxury single-family houses in Miami-Dade dropped by 21.5% and condominiums, by 9.8%. The average cost per square foot, however, increased by 7% (up to $807) and by 8.8% (up to $1,098), respectively.
Mike Pappas, CEO at The Keyes Company and Illustrated Properties, notes that sellers and buyers in the luxury real estate market understand market normalization. It makes sense to compare the performance with the pre-pandemic year 2019, not the record-setting year 2021. Experts expect particularly active sales in the second half of 2023, when people are no longer concerned by the uncertainty and fluctuations in the market.